Will unions and employers find a compromise on the new compensation rules?

The social partners have, from Friday, two months to reach an agreement, otherwise the government will take control.

Unions and employers will meet from Friday September 22 to negotiate, at the Unédic headquarters in Paris, the future rules of unemployment insurance. This involves agreeing on the future conditions for receiving unemployment benefit when you lose your job. On the employee side, several questions arise around the necessary work period to receive compensation, its amount and its duration. For the business leaders, it is a question of defining the level of employer contribution.

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This negotiation is done between unions and employers, as always, but under the gaze of the State. The social partners have two months, until mid-November, to find a compromise, otherwise the government will take control. Uno agreement seems complicated because the unions do not want to tighten the rules. They believe that there have already been enough reforms which have penalized job seekers,while the bosses themselves lack resources and skills in many sectors. They would like to review the system which, according to them, does not encourage the return to work.

A framework letter from the government

The State will ultimately decide and the government is in ambush, eThis is evidenced by the letter sent to the social partners. It is a framing letter, in which he asks them not to unravel the previous reform. As a reminder, this reform provides for a change in the calculation of the allowance. It reduces, for example, the amount for workers who have a series of short contracts. It establishes a new system of modulation with the labor market. When the unemployment rate is low because there are job offers, the job seeker is less well supported by the system. And conversely, when the economic situation is more complicated, the job seeker is better compensated.

The government wants to go further. IHe wants to tighten the rules, especially since the regime is once again in surplus. In the 2024 budget, which he will present in a week, Bruno Le Maire, the Minister of the Economy, is counting on 700 million euros in savings on the unemployment insurance system. Making a new reform is also a signal that the government wants to send to our European neighbors and the rating agencies, to show them that France continues to reduce its deficit. Ppolitically, it’s easier. Unlike pensions, a reform of unemployment insurance is rather well received by public opinion.


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